From my experience, centralized product data matters a lot once you sell in more than one place. Even a small store can lose time fixing tiny mismatches between the website, marketplaces, ads, and supplier sheets. I used to think this was only a “large catalog” problem, but it also happens with 100 or 200 products if several people touch the listings. I found this page useful when I was trying to understand different tools and how they organize product information: https://piminto.com/blog/top-best-product-information-management-software. It explains the idea in a pretty practical way. For me, the biggest advantage is not just neat organization, but knowing that product names, specs, images, and descriptions are being updated from one reliable place.
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